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What is "Rapid Acquisition" and Why Should Anyone Care?

We should go back in history to the time when you had to be a financially responsible citizen to purchase real estate through conventional methods … but we will not. At least not in this posting. Instead we will very shortly answer the question, “What is rapid acquisition and how does it affect real estate investors and real estate professionals who provide services to real estate investors?”

Many conventional lenders who loan up to 100% of the purchase price on non-owner occupied residential investment properties have, in the last several months, added the limitation to purchases we call Rapid Acquisition. Essentially it is a limitation designed to prevent lending for investment property purchases to anyone who has passed the limit on the purchase of real estate properties in a specific time period. Most lenders who have a rapid acquisition limitation follow these guidelines:

No more than 4 properties in any 24 month period

No more than 2 properties in any 6 month period

This generally means even if you purchased a real estate investment property using funding from another lender the purchases count toward rapid acquisition.

Some lenders who have Rapid Acquisition allow rapid acquisition will allow an exception if the borrower has enough liquid assets (reserves) to cover 6 months of payments of the entire investment portfolio.

If you are troubled by this please read the blog Stop The Bleeding.